HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

China Traditional Chinese Medicine (570.HK) - Will This Privatization Rumor Come True ?

China Healthcare Weekly (Feb.12) - New Pricing Mechanism for Drugs, China Biotech M&A, Medicilon

I-Mab to Divest Chinese Assets and Business Operations for up to $80M - An Escape by Crafty Scheme

China Traditional Chinese Medicine (570.HK) 23H1-Positive Profit Alert Reinforce Optimism About 2023

China Traditional Chinese Medicine (570.HK) - The Privatization Rumor and the Outlook

China Traditional Chinese Medicine (570.HK) - Looking Forward to a Performance Turnaround in 2023

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

China Traditional Chinese Medicine / Equity Bottom-Up

China Traditional Chinese Medicine (570 HK)

<ul>
<li>The recovery of concentrated TCM granules business makes us optimistic about China TCM's 2023 full-year performance growth. The resurgence of pandemic and privatization rumor always attract the attention of investors.</li>
<li>Pientzehuang’s 23Q3 performance was disappointing. Consumption downgrade makes the strategy of raising prices no longer effective. There is downward pressure on valuation as performance will not turn around soon.</li>
<li>The investment logic of rigid demand is more convincing than consumption upgrading. So, China TCM is more likely to outperform Pientzehuang. Our view is long China TCM, and short Pientzehuang.</li>
</ul>


The recovery of concentrated TCM granules business makes us optimistic about China TCM's 2023 full-year performance growth. The resurgence of pandemic and privatization rumor always attract the attention of investors.
Pientzehuang’s 23Q3 performance was disappointing. Consumption downgrade makes the strategy of raising prices no longer effective. There is downward pressure on valuation as performance will not turn around soon.
The investment logic of rigid demand is more convincing than consumption upgrading. So, China TCM is more likely to outperform Pientzehuang. Our view is long China TCM, and short Pientzehuang.


Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.

China Healthcare–A Pair Trade Between China TCM (570.HK) And Pientzehuang Pharmaceutical (600436.CH)